Contractors Center Point provides value updates and information for the construction community as it relates to stimulus, green building and projects, current econominc data and conditions and overall financial and tax solutions for the construction community.

11/11/2013

A Flurry Of Good News For the Construction Market

U.S. construction
spending hit a near 4-1/2 year high in August, boosted by increases in both
private and public outlays, a hopeful sign for third-quarter economic growth.

Construction spending increased 0.6 percent to an annual rate of $915.1 billion, the
highest level since April 2009, the Commerce Department said on Tuesday.

Construction spending in July was revised to show a 1.4 percent rise
instead of the previously reported 0.6 percent gain.

The report was originally scheduled for release on October 1 but was
delayed after the federal government was partially shut down because of a fight
over the budget. The 16-day shutdown ended last Wednesday.

Construction spending in August was lifted by a 0.4 percent rise in
public construction projects. That was the fourth consecutive month of gains
and came even as federal government spending on construction projects tumbled.

There was also a boost from spending on private construction projects,
which increased 0.7 percent to its highest level since January 2009.

Private residential construction spending jumped 1.2 percent to a
five-year high, showing little sign that high interest rates were slowing
activity. Part of the increase in residential construction spending reflected
home improvement projects.

Architecture Billings Keep Growing

Demand for
architectural design services continued to increase in September, according to
the Architecture Billings index survey conducted each month by the American
Institute of Architects. At 54.3, the September score—up from 53.8
in August—shows a continued acceleration of billings and work for
architecture firms. In each of the past four months, the score has come in
slightly higher each time. (Scores above 50 indicate industry growth and below
50 indicate industry contraction.)

While billings
are accelerating, project inquiries cooled off ever-so-slightly. At 58.6, the
inquiries score is still quite high, but it is lower than the elevated score of
63.0 recorded in August. In fact, six of the nine months of 2013 have seen this
score come in higher than 60.

National
HighlightsBillings: At 54.3, up from August’s 53.8, this is the
fifth straight month above 50. Eight of the nine months of 2013 have come in
above 50, as have 13 of the past 14 months. Project Inquiries: At 58.6, this score is down from 63.0
in August.

Regional HighlightsNortheast: At 50.7, down from 53.0, this is the 13th
straight month above 50. Midwest: At 51.0, down from 51.7, this is the third
straight month above 50. Six of the nine months of 2013 have come in above 50
for this region. South: At 54.1, up from 52.8, this is the 15th straight
month above 50. West: At 60.6, up from 58.2, this is the 14th straight
month above 50. Looking at the past data, this also appears to be the highest
score for the West region in the history of the ABI.

Sector HighlightsMultifamily Residential: At 55.6, up from 54.6, this is
the 17th straight month above 50. In fact, this sector has dipped below 50 only
once in the past two years. Commercial/Industrial: At 57.9, up from 55.5, this is
the 12th straight month above 50, and the highest score for the sector since
November 2007. Institutional: At 50.4, down from 50.7, this is the 14th
straight month above 50. Mixed Practice: At 55.4, down from 57.9, this is the
13th straight month above 50.